Tuesday, December 7, 2010

Points of Concern - A Weak Ascending Triangle Breakout

I did not like the ascending triangle breakout today.

We had a throwback to the support level @ 1223 by the close. While this can be normal, my expectations were for a healthier breakout. We had tremendous volume which is what you would want to see with an ascending triangle breakout. However, I checked the Chaiken Money Flow and the money flow was in serious decline this week. Hmmn. That doesn't make sense with an ascending triangle breakout unless the institutions were selling. Hmmn.

I am also mindful that we are approaching a seasonally weak period of December (December 11 - December 22). When I combine these factors together, I have to say that my anxieties are peaking.

I will have a more extensive posting tomorrow evening.

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